[Y7ZCQtNo39]

I feel like you haven't lived on $25k/yr, at least not without the help of student loans or family.

You take FICA out, some federal/state taxes, you've got less than $2k a month. That doesn't stretch too far in some places.

Also, since you're lower working class, you're not going to be buying in bulk. You're not going to be avoiding late fees. You're not going to have economies of scale available to you on a $100k annual income.

So, the ability to save $5.5k is much different for someone earning $25k vs $100k. I'm not saying it's outright impossible, but it will have measurable impact on lifestyle for the lower income worker, whereas not so much for the higher income worker, since each marginal dollar you earn provides less and less utility. But the first $25k you earn really is your lifeline to meet basic necessities in life.

[loco5niner]

I did it for years. I was single, had a mortgage. Ate out. Went on reasonable vacations. It's doable.

[leifaffles]

I live on 18k/year in a HCOL area. Don't tell me it can't be done.

[Y7ZCQtNo39]

So you earn 18k, save 5.5k, and live off 12.5k? Do you have any assets, such as paid off home, that would significantly reduce your monthly expenses? Context would be key here.

[leifaffles]

I mean my living expenses, including rent, utilities, food, transportation, health care, etc, add up to $1.5k per month (or ~18k per year).

As in, I could make $25k (at a level where the tax rate is effectively near-0) and still save > $5k per year.

[Y7ZCQtNo39]

Is this employer-provided health care? Sounds like you're receiving is subsidized. Living on $18k a year would be rough. Are you splitting an apartment? How much would you be paying if you had kids and needed another bedroom? Again, context is key. For a single person in their 20s, who will have the lowest level of responsibility and statistically the best health situation of their life, it's possible. But for other people, $1.5k/mo in a HCOL would not cut it.

[yarrel]

So you don't actually live on 18k per year, and you're certainly not saving 5k/pa on 18k?

[Bjartr]

It'd be cool to see a deeper breakdown of your expenses, if you wouldn't mind?